SPORTS, CULTURE, TOURISM, ARCHAEOLOGY &

MUSEUMS AND YOUTH AFFAIRS DEPARTMENT,

GOVERNMENT OF KHYBER PAKHTUNKHWA

13-A, Attached Building Complex, Khyber Road,

Peshawar. Phone: 9211091 Fax: 9210871

PC-I

OF THE
UMBRELLA SCHEME NAMELY
637-130649 Tourism Policy New Initiatives,
Having Estimated Cost Rs.300.000 million with
allocation for CFY 2013-14 of Rs. 120.000 million on
the capital side and Rs. 30.000 million on revenue
side.

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Revised 2005

GOVERNMENT OF PAKISTAN
PLANNING COMMISSION
PC-I FORM
(SOCIAL SECTORS)

1.

Name of the project :

PC-I of the Umbrella scheme namely Tourism

Policy New Initiatives.

2.

Location

Khyber Pakhtunkhwa

3.

Authority responsible for

i. Sponsoring

Tourism Department, Government of

Khyber Pakhtunkhwa.

ii. Execution

Tourism Corporation, Khyber Pakhtunkhwa.

iii. Operation and maintenance

Tourism Corporation, Khyber Pakhtunkhwa.

iv. Concerned federal ministry

Tourism Department, Government of Khyber

Pakhtunkhwa.

4.

Plan provision

5.

Project objectives and its relationship

with Sectors objectives:

PC-I of the Umbrella scheme namely Tourism

Policy New Initiatives reflected in ADP 2013-14 at
637 bearing computer code 130649 having
Estimated Cost Rs.300.000 million with allocation
for CFY 2013-14 of Rs. 120.000 million on the
capital side and Rs. 30.000 million on revenue
side. The remaining allocation of Rs.150.000million
to be provided in next financial year.

The scheme has been prepared to increase the

flow of domestic tourists to Khyber Pakhtunkhwa
besides equipping the Tourism Corporation in
terms of publicity and promotional material in order
to act as a catalyst for eliminating poverty, reviving
the war-affected tourism industry and making it an
enterprising activity at the grass root level with
special emphasis on combating militancy and
terrorism. Moreover, to make the provinces culture
and history accessible and understandable to a
diverse public to foster a sense of identity, place
and pride for our people.

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6.

Description, justification and

technical parameters

7.

The proposed scheme is in line with the policy of

the provincial government and it aims to create a
conducive environment that in turn is expected to
enhance the soft image of Khyber Pakhtunkhwa
on the one hand while making tourism as a venture
for income generation by the local communities on
another. The thrust of the activities is to generate
opportunities for healthy recreation that is in
consonance with the local heritage and culture. It
also incorporates promotional activities and
provision for logistics for the holding of regular
tourism propagating events throughout the
province thereby defeating militancy by means of
this cultural offensive.

Capital cost estimates:

The following is the abstract by the cost followed by the detailed costs:7.1

ABSTRACT OF SUB SCHEMES / ACTIVITIES

Cost
(Million)
2013-14

S#

Items

1.

Dagri Rest House retrofitting and utilization as

campers resting site

2.

Cost
(Million)
2014-15

2.000

1.000

Development Gabeen valley and Sulaton Valley

as a tourist resort

10.000

10.000

3.

Rest Areas and Sign Boards

10.000

10.000

4.

Log huts, Restaurants and skiing facilities at

Malamjaba

20.000

20.000

5.

Development Kumrat valley as a tourist resort

5.000

5.000

6.

Opening of Supat Lake/Meadows

10.000

5.000

7.
8.
9.
10.

Restoration of Pakistan-Austrian Institute of Hotel

Management (PAITHOM), Swat.
Restoration, modification and addition to the
PTDC assets under transfer to TCKP.
Payment of Salaries for 24 months to the 247
employees being transferred with PTDC.

11.000

10.000

20.000

26.000

50.000

50.000

Carvans

12.000

13.000

150.00

150.00

Rs. Million

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7.2 The detail list of the staff of PTDC assets under transfer to Khyber Pakhtunkhwa:

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7.3

SALIENT FEATURE OF PROVINCIAL TOURISM POLICY

The Role of Public Sector.
In one word Facilitation or it should act as a facilitator and not as a inhibitor.
I.

Direct role of the Government :

(a).

To provide basics such as :

-

(b).

Roads
Electricity
Security & Sense of it

Government Departments responses in terms of prompt action viz-a-viz private

investors and stakeholders in tourism e.g :
-

Utilities (WAPDA,Gas etc)

Health
Police Emergency
Telecommunication
Local Govt

: To provide utilities & repair breakdowns.

: Health cover & emergency response.
: Security with a tourists friendly approach.
: Contact with rest of the world.
: Road clearances, fire fighting etc.

(c)

Opening up new touristic areas where initial private investors are shy e.g opening
up of Gabeen valley / Sulaton Valley, Kumrat valley, Supat Lake/Meadows and
creation of rest areas with installation of sign boards etc.

(d)

Generate extra activities to bring tourists in collaboration with private sector:

-

II.

Establishment of Chairlifts at all feasible touristic sites especially those

having skiing potential.
Water Sports facilities at Naran-Kaghan, Kalam-Mahudhand and at all other
feasible sites.
Tentage Village with all allied facilities especially to beat the summer heat
and make available appropriate accommodation facilities to interested for all
segment of society.
Setting up of base-camps for mountaineering & trekking in close proximity to
mountains where tourists can learn and practice mountaineering & rock
climbing etc.

(e)

Opening Up Government facilities to Tourists

The rest houses of various Government Departments, to be opened for

tourists by leasing out to private sector through TCKP with a share/priority
consideration of the officials of the owner departments.

Subtle / Indirect role of Govt:

-

The Government should provide a positive tax regime for tourism sector.
It should undertake positive intervention on the analogy of Ministry of
Petroleum as they have made it mandatory at all the Petrol Pump would host
toilet-tuck shops etc.
Improving perceptions by the Ministry of Tourism through Worldwide Media
that all is not that bad and thereby create a niche for Pakistan Tourism.
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III.

Role of Federal Government :

-

IV.

It should be coordinating efforts of provinces to project Pakistan in favorable

light as an international tourists destination.
Coordinating efforts of provinces for inter-provincial interaction and
cooperation in tourism related activities.
Ensuring that Federal taxation regime is favorable to tourism sector in the
provinces.

Role of Provincial Governments :

-

V.

Coordinating the efforts of various stakeholders through regular holding of

conferences, seminars, workshops etc.
Capacity building arrangements for the officials in the public sector and
representatives of private sector in all tourism related activities.
Provision of Information through global media and local newspapers,
journals etc.
Relevant Tourism Department should act as a watch dog for ensuring that
cultural norms, traditions, environmental issues and quality of services are
maintained.
Ideally the functions of Department of Tourists in the Ministry may be
delegated to the Provinces.

Ensuring infrastructural support to tourism sector viz roads, utilities etc.

Ensuring quality services provision to tourists by service providers at the
grass root level, thus role of controller tourists services (Federal Govt) would
need to be transferred to the Provincial Governments.
Ensuring developing institutional synergy in Provincial Government
Departments like Wildlife, Culture, Forestry, Environment, Archaeology etc.
for promotion of tourism.

Role of District Governments :

The District Govt have a number of town committees, municipal committees,
municipal corporations and district councils. They can improve tourism by:
-

7.4

Keeping the cities / towns neat & clean.

To control the building of hotels & restaurants under the Municipal enactment
already promulgated.
To inspect cleanliness of hotels & restaurants.
To install directional boards & improve historical sites.
To build children plan parks.
To open their rest houses to tourists.

Explanation: Under the 18th amendment the Federal Government have transferred
to the Provincial Government in the Tourism Department Pakistan-Austrian Institute
of Hotel Management (PAITHOM), PTDC Motels, Hotels, TICs located in this
province, Malam Jabba Resort limited. The assets transferred are not in a condition
to efficiently cater the objectives for which they were created, therefore, it is
imperative to restore, rehabilitate, modify and add where required to the existing or
demolished structures. In addition to the assets approximately 247 employees of
PTDC coming in with the assets, whose two years salaries are pitched Rs.100
million. The provincial government has to retain these employees however it has
been decided by the Federal Government that the provincial government has the
authority to decrease or increase number of employees on need basis keeping in
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view their performance. Initially we may fund it from the scheme under
consideration and once all facilities are resorted / fully operational we may transfer
their salaries to establishment sides for financing through grant in aid from Finance
Department as well as from the proceeds of the income accrued to these assets.
Professional team of experts has to be hired to undertake the civil works provide
detailed drawing and design, supervise M&E and execute till completion the
scheme. Already the government has determine as a policy mater that consultants
@ Rs. 2% of the total cost of the PC-I have to be engaged for M&E as well as
consultants are also to be engaged @ Rs. 3% of the total cost of the project to
provide detailed designs and shall be responsible to the department and the
provincial government for in time execution and completion of the scheme. The
PDWP may give it principle approval and allow the DDWP to considered and
approve each and every individual component of the scheme on actual costs.
8.

Annual operating and maintenance cost

after completion of the project:
The sub schemes would be operated initially by
the public sector to assess the income and
expenditure and thereafter, determine a frame
work at provincial level for leasing out these
assets on public-private partnership basis
wherever feasible.

9.

Demand and supply

10.

Financial Plan and mode of financing

There is enormous potential for tourism in the

northern Khyber Pakhtunkhwa scenic beauty and
hills in the north, Ghandara civilization and other
rich cultural heritage in the plains and
archeological sites and rugged terrain in the
south. The corporation intends to capitalize on the
comparative advantage of the province in the
tourism sector.

Rs. in million
-------------------------------------------------------------------------------------------------------------------------Amount for
Amount for
Capital
Recurring
Sources
Expenditure
-------------------------------------------------------------------------------------------------------------------------I
(a)
Government sources:
(Federal/Provincial)
Provincial
(i)
(ii)
(iii)
(iv)
(b)

Grant
Loan
Equity Investment
Direct Government
Expenditure

Sponsoring Agency's own

Contribution.

300.000 million
NONE
NONE
Rs.300.000
The sub schemes would be operated
initially by the public sector to assess the
income and expenditure and thereafter,
determine a frame work at provincial level
for leasing out these assets on publicprivate
partnership
basis
wherever
feasible.
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II

(c)

Private Investment

NONE

(d)

Local Body resources

If any.

NONE

(e)

Non-Government borrowing.

NONE

(f)

Other sources
(e.g. Recoveries)

NONE

Likely sources and amount of

foreign exchange cost of the project.

NIL.

(a)
(b)

11.

Present position regarding availability,

commitment of negotiations.

NIL.
Since the scheme is purely financed
from provincial governments own
receipts.

Project benefits and analysis

i. Financial Social benefits with indicators
The sub schemes are expected to boost the
soft image of Khyber Pakhtunkhwa. It is
further expected that more tourists will be
attracted. Moreover the functioning of the
corporation is also expected to improve with
better logistics and expanding publicity and
trend throughout the region and finally
around the globe.
ii. Employment generation (direct and indirect)
The sub schemes under the umbrella
scheme are expected to directly contribute
to
the
improvement
of
existing
assets/creation of new assets and to enable
the corporation to be mobile in the field in
order to peruse the notions of promotion of
tourism through income generation by the
local communities through small scale
enterprising activities for elimination of
poverty.
iii. Environmental impact
The initial environmental examination
indicates that the proper disposal of
sanitation would help in maintaining clean
environment.
iv. Impact of delays on project cost and viability
All the sub schemes have to be completed
during twenty four months, therefore, no
major escalation of cost is expected.
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12.
13.

14.

Implementation Schedule
(including starting and completion dates)
Additional projects / decision required to
maximize socio-economic benefits from
the proposed project.

Certified that the project proposal has been

prepared on the basis of guidelines provided
by the Planning Commission for the
preparation of PC-I for Social Sectors.

Twenty four months.

The sub schemes would be operated

initially by the public sector to assess the
income and expenditure and thereafter,
determine a frame work at provincial level
for leasing out these assets on publicprivate
partnership
basis
wherever
feasible. The Tourism Corporation Khyber
Pakhtunkhwa would also sensitize the
local communities for undertaking tourism
as income generating activities at the
grass roots level thereby creating
employment to the locals especially the
youth.

The cost estimates are according to the

open market rates.

15.

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